Gold price surges, as WTI price hesitates in key week

Gold starts to rebound after retracement into Fibonacci support, while WTI consolidates ahead of the June contract end.

Gold turning higher after decline into support

Gold price declines seen over recent days always looked like a retracement given the rally through the $1713 swing high last Thursday.

With that in mind, the Fibonacci support levels were of particular interest as potential sources of a bullish surge. That looks to finally be happening, with the decline taking us into a confluence of trendline and 76.4% Fibonacci support. With the price of gold turning higher this morning, it is likely we are seeing the beginning of the next move higher for gold. A break below $1682 would be required to negate this bullish outlook.

WTI continues to consolidate in key week

WTI failed to really react yesterday after Saudi Arabia announced both that they are cutting more than expected, and could cut further after the June Organization of the Petroleum Exporting Countries (OPEC) meeting. That inability to respond is the inverse situation from that seen on the way up, where negative news was ignored and positives taken onboard.

The consolidation we are seeing here, therefore, looks like a top, with a break below the $23.84 paving the way for a period of downside. With the June WTI contract ending next Monday, all eyes will be on that front month contract as we look to see if oversupply and a lack of storage options will help avoid another foray into negative territory. Whether that happens or not, market fears of such a move could see the June contract decline in the lead up to the deadline, driving a widening contango for the short term. However, for now we are in consolidation mode, with a break through $23.84 or $27.39 required to provide a clear directional bias.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.